International Marketing Chapter Exam Questions
Course Introduction
International Marketing explores the strategies and practices businesses employ to effectively market their products and services in the global marketplace. The course examines the complexities of international market environments, including cultural, economic, legal, and political influences. Students will learn about market research and analysis, entry modes, product adaptation, pricing strategies, global distribution channels, and international promotional techniques. Emphasis is placed on developing a marketing mix appropriate for different international contexts and understanding the ethical and social responsibilities involved in cross-border marketing. Through case studies and real-world examples, students will gain the skills necessary to create and manage successful marketing campaigns across diverse international markets.
Recommended Textbook
International Marketing Asia Pacific 3rd Edition by Michael R. Czinkota
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Chapter 1: Introduction to international marketing
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Q1) Firms increasingly understand that many of the key difficulties encountered in doing business internationally are marketing problems.
A)True
B)False
Answer: True
Q2) Which of the following events helped identify global linkages, causing the world to realise that the systems of product development, distribution and consumption are intertwined and related?
A)The worldwide oil crisis of 1970
B)Gulf War One and Gulf War Two
C)The Second World War
D)The opening of the Suez Canal
Answer: A
Q3) The global market imposes increasingly tight limits on national economic regulation and sovereignty.
A)True
B)False
Answer: True
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Chapter 2: The economic environment
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Q1) A true economic union:
A)integrates economic policies between members.
B)allows the free movement of goods, services, but not the movement of the factors of production across borders.
C)prevents fixed exchange rates in the common currency.
D)is like the Southern African Customs Union.
Answer: A
Q2) China is economically developed in the east, north and west.
A)True
B)False
Answer: False
Q3) What is the Physical Quality of Life Index (PQLI)?
A)A composite measure of the level of welfare in a country
B)A composite measure of the GDP per capita of a country times the 'world happiness index score
C)A composite measure of the level of life satisfaction of the population of a country
D)None of the above
Answer: A
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4
Chapter 3: Trade institutions and trade policy
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Q1) The classic predicament of poorer developing countries is:
A)high-tech, high-value-added products being imported.
B)high-tech, high-value-added products being exported.
C)exports begin mainly, or even exclusively, composed of processed raw materials.
D)exports begin mainly, or even exclusively, composed of unprocessed raw materials, with the high-tech, high-value-added products being imported.
Answer: D
Q2) Successful foreign competitiveness in international trade has resulted in major trade deficits for Australia, New Zealand and the USA.
A)True
B)False
Answer: True
Q3) How many countries are members of the World Trade Organisation?
A)53 countries
B)98 countries
C)159 countries
D)201 countries
Answer: B
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5
Chapter 4: The political and legal environment
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Q1) Which of the following is incorrect?
A)The USA has developed into an increasingly litigious society in which institutions and individuals are quick to take a case to court.
B)Japan, for example, has particularly strict health standards that affect the import of pharmaceuticals.
C)Sanitary and Phytosanitary (SPS)regulations are of particular concern to exporters of foodstuffs, such as Australia and New Zealand.
D)The enforcement of laws may not have a different effect on national and on foreign marketers.
Q2) One reason that no systematic (trade)sanctioning policy developed in the United Nations was because 'peace' and 'breach of peace' are seldom perceived in the same way by all members.
A)True
B)False
Q3) Explain the implications of climate change to international marketers.
Q4) 'Grey market' is another term meaning 'parallel exporting'.
A)True
B)False
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Page 6
Chapter 5: The cultural environment
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Q1) Which of the following is not one of Hofstede's cultural dimensions?
A)Power distance
B)Uncertainty avoidance
C)Humane orientation
D)Gender-role orientation
Q2) According to the textbook, the process of acculturation is one of the keys to success in international operations.
A)True
B)False
Q3) Primary reference groups do not include:
A)family.
B)trade organisations.
C)co-workers.
D)local communities.
Q4) Which of the following religions has the largest following among world religions?
A)Islam
B)Catholicism
C)Christianity
D)Confucianism
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Chapter 6: Building the knowledge base
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Q1) Which of the following is a typical question of the stage one in sequential process of research foreign market potentials?
A)What is the market share of my company is this market?
B)How attractive is the potential demand for company products and services?
C)What is the aggregate demand in each of the selected markets?
D)Which foreign markets warrant detailed investigation?
Q2) The first stage of a sequential process of researching foreign market potentials is a preliminary screening for attractive country markets, followed by:
A)analysing and interpreting secondary data.
B)determining secondary information requirements.
C)a company sales potential analysis and an assessment of industry market potential.
D)an assessment of industry market potential and company sales potential analysis.
Q3) A major reason that firms are reluctant to engage in international marketing activities is the lack of sensitivity to differences in consumer tastes and preferences.
A)True
B)False
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Chapter 7: Foreign market entry
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Q1) Under a licensing agreement:
A)the licensor permits another to use its intellectual property.
B)the licensee is paid on a royalty basis.
C)there are no intangibles.
D)control is shifted from the original centre of gravity on the vertical supply chain.
Q2) Agents have less freedom of movement than distributors.
A)True
B)False
Q3) _____________incentives are specific tax measures designed to serve as an attraction to the foreign investor._______ incentives offer special funding for the investor by providing land or buildings, loans.loan guarantees or wage subsidies._________ incentives can consist of guaranteed government purchases; special protection from competition through tariffs, import quotas and local content requirements; and investments in infrastructure facilities.
A)Financial; Fiscal; Non-fiscal
B)Fiscal; Financial; Non-fiscal
C)Fiscal; Financial; Non-financial
D)Semi-financial; Financial; Non-financial
Q4) Why is licensing so popular with many potential international marketers?
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Chapter 8: Channels of distribution and logistics
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Q1) Foreign legislation affecting distribution and agents is part of what is termed 'distribution culture'.
A)True
B)False
Q2) Which of the following is not an advantage of a single distributor?
A)Promotional activities
B)Less noise in communication channel
C)More economical logistics flows
D)Elimination of intra-brand competition
Q3) Which of the following is not an advantage of a single distributor?
A)One corporate presence eliminates confusion among buyers and local officials.
B)Communication is less plagued by noise.
C)Logistics flows are more economical.
D)Marketing programs are cheaper.
Q4) Which of the following is incorrect? Retailers in Japan:
A)demand more from manufacturers and wholesalers than do other retailers.
B)expect wholesalers to build close relationships with their consumers.
C)expect returns of merchandise to be fully accepted even if there is no reason other than lack of sales.
D)expect significant amounts of financing and frequent delivery of products.
Page 10
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Chapter 9: Product policy and adaptation in international markets
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Q1) The product adaptation decision is as influenced by _______ as by governmental influences.
A)the company's policy and profit model
B)economic social and climactic conditions
C)the characteristics and behaviour of intended customer groups
D)All of these choices
Q2) Economic integration is a driving force in making markets more unified and therefore making product standardisation more likely.
A)True
B)False
Q3) Warranties can be uniform in the international market if:
A)use conditions do not vary dramatically.
B)if the company is actually capable of delivering on its promise everywhere.
C)market conditions demand uniform warranties.
D)use conditions do not vary dramatically and if the company is actually capable of delivering on its promise everywhere.
Q4) Economic integration usually reduces discriminatory governmental regulation.
A)True
B)False
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Chapter 10: Product and brand management in international markets
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Q1) Which of the followings statements does not represent an advantage of the product portfolio approach?
A)A global view of the competitive structure
B)A guide for formulating a global marketing strategy based on the suggested allocation of scarce resources between product lines
C)A convenient visual communication goal, achieved by integrating a substantial amount of information in an appealingly simple format, including assessment of interlinkages between units and products
D)All of these choices
Q2) Another key issue affecting product planning will be _______________ concerns.Major public attention will be paid to the natural environment, ______________ pollution and ___________
A)environmental; environmental; global warming
B)public; environmental; global warming
C)environmental; environmental; cultural change
D)government; environmental; global warming
Q3) Why are international product development teams gaining popularity among multinational marketers?
Q4) What are the major advantages of the product portfolio approach?
Page 12
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Chapter 11: Services marketing
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Q1) How have the four unique characteristics of services had an impact on the international trade of services?
Q2) The issue of quality control for international services may be much more difficult to deal with due to different service uses, changing expectations and varying national regulations.
A)True
B)False
Q3) Increase in employment in services is a common feature of economic development.
A)True
B)False
Q4) Communicating the service offer is:
A)more difficult than communicating the offer for a good.
B)easier than communicating an offer for a good.
C)a perishable offering.
D)dependent on service capacity and delivery efficiency.
Q5) Explain the two major types of typical obstacles to service trade.
Q6) Increasingly, services compete against goods and become an alternative offering.
A)True
B)False
Page 13
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Chapter 12: Pricing in international markets
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Q1) Which of the following is considered an external factor in setting an export price?
A)Specific target market customers
B)Cost of developing the product
C)Cost of producing the product
D)Cost of marketing the product
Q2) A more refined form of barter, aimed at reducing the effect of the immediacy of the transaction, is called:
A)switch trading.
B)buyback.
C)clearing arrangements.
D)complex barter.
Q3) Prices quoted ex-works (EXW)are when the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period.At which point do these prices apply?
A)At the end of the contract
B)Only at the point of origin
C)Throughout the entire process
D)Before, during and after the process
Q4) What is the process of setting an export price?
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Chapter 13: International marketing communications
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Q1) Creating brand awareness by arranging to have a product shown or used in a visual medium - such as films, television, games or websites - is known as:
A)movie marketing.
B)out takes.
C)intakes.
D)product placement.
Q2) The purpose of direct marketing is establish a relationship with a customer in order to:
A)reduce the likelihood of the influence of competitor advertising.
B)help the customer understand the marketing campaign personally.
C)initiate immediate and measurable responses.
D)highly personalise the tools of communication.
Q3) Thirteen of the world's top 25 advertising agencies are based in the USA.
A)True
B)False
Q4) Because of monetary constraints that most exporters face, promotional efforts should be concentrated on key markets.
A)True
B)False
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Chapter 14: Social Networking and Communications
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Q1) Which of the following is true about the use of social media for sales promotion?
A)Offering coupons online significantly increases the costs of development, distribution and database creation.
B)Firms offer coupons to entice customers to act immediately by visiting a website.
C)Firms will have to incur costs on the printing of coupons.
D)Consumers take considerably more time to search and organise online coupons.
Q2) In India, 40 per cent of internet users create some form of online content, whether posting entries at fan sites, editing videos or interacting with blogs.This is an example of:
A)culture-generated media.
B)company-generated media.
C)consumer-generated media.
D)social-generated media.
Q3) Cultural differences have very little impact on the way social media are used around the world.
A)True
B)False
Q4) Explain giving examples how culture has an impact on the use of social media.
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